Ric Campo, chairman and CEO of Camden Property Trust (NYSE: CPT), said that while April rent collections have slowed somewhat in the past week, “generally we feel pretty good about where we are” in terms of residents’ ability and willingness to pay rent.
Lodging Sector Facing Protracted Recovery
The lodging sector was one of the first industries to feel the economic brunt of the coronavirus crisis, and it will likely be one of the last to benefit from an eventual upturn, Pebblebrook Hotel Trust (NYSE: PEB) Chairman and CEO Jon Bortz said.
Flight to Quality in Retail Real Estate Expected Post-Crisis
Retail tenants will gravitate to malls and shopping centers that hold dominant positions within their local trade areas as they seek to ensure their profitability following the coronavirus crisis, according to an April 8 Moody’s Analytics webinar.
Robb Paltz, associate managing director at Moody’s Investor Service, said retail tenants “can’t gamble on malls that are speculative or have low traffic volume and are going to create very low margins for them.” He said he expects a “flight to quality” within the retail REIT sector in response to the coronavirus crisis.
Prologis CEO Expects Businesses to Operate with Higher Inventory Levels Post-Crisis
Prologis, Inc. (NYSE: PLD) chairman and CEO Hamid Moghadam said he expects businesses to operate with a higher level of inventories following the coronavirus crisis.
Speaking on an April 6 business update conference call, Moghadam noted that for approximately the past 20 years supply chains have been structured for efficiency. “People have been squeezing more and more inventory out of the system. The supply chains have been longer and longer, so they’re very vulnerable to disruption,” he said.
Economic Uncertainty from Coronavirus to Remain High, Likely into May
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Nareit Senior Economist Calvin Schnure said in an April 6 REIT Report podcast interview that uncertainty surrounding the coronavirus and its impact on the economy and markets will remain high, certainly through April and likely into May.
Schnure also noted that while REITs and broader stock indices are at a deep discount compared to pre-crisis levels, they are up from lows reached several weeks ago.
Leadership Skills Under Close Scrutiny During Periods of Crisis
The April 2 edition of the REIT Report podcast featured Walt Rakowich on the topic of leadership during a time of crisis. Rakowich became CEO of ProLogis at the height of the economic downturn in 2008 and restored the company’s finances, enabling it to merge with AMB Property Corp. in 2011 to create Prologis, Inc. (NYSE: PLD).
mREIT Executives Shed Light on Recent Market Volatility
In recent weeks, the mREIT sector has borne a disproportionate amount of liquidity-driven market turmoil triggered by the coronavirus crisis. With conditions showing signs of settling, for now, several Nareit mREIT members took a step back to give a first-hand account of what their companies have been dealing with.
REITs Should Prepare for Possibility of Increased Activist Investor Interest Following Crisis
REITs need to take a proactive stance to ensure they are ready to deal with activist investors that could emerge in the wake of the current coronavirus market uncertainty, according to a REIT corporate governance expert.
John Haggerty, co-chair, public M&A/corporate governance at Goodwin, told an April 2 webinar that activist investors see increased buying opportunities in the current environment “and are sitting on a lot of cash that has long-duration lockup, so they’ve got it there to use.”